BlueLinx Holdings reported third-quarter 2026 net sales of $813 million, up 8.5% year over year, as higher volumes, pricing and its Disdero acquisition supported results amid a weak housing market. Gross profit rose 21% to $131 million, and gross margin increased 170 basis points to 16.1%.
Adjusted EBITDA reached $31.7 million, a 42% increase from the year-earlier quarter, while Free cash flow was $39.6 million. Adjusted earnings per share were $0.68, which the source report said exceeded analyst estimates by 28.3%; revenue was slightly below forecasts.
Specialty products generated $550 million in sales, up 5%, and accounted for 68% of sales and 78% of gross profit. Their gross margin expanded 210 basis points to 18.7%. Structural products sales rose 18% to $263 million, with gross margin up 140 basis points to 10.7%. The company attributed the segment’s growth to improved pricing and volumes, including higher lumber and panel prices.
BlueLinx ended the quarter with $350 million in cash and $689 million in available liquidity. Its net leverage ratio was 0.2 times on a credit-agreement basis. The company also reported $44.7 million in cash provided by operations and net working capital of $484 million.
Management said it plans to invest an additional $15 million to $20 million in inventory tied to new supplier partnerships and premium brands. The products are expected to make a more meaningful contribution in 2027. BlueLinx is also investing in digital tools for quoting, ordering, customer self-service and inventory optimization.
The outlook for the fourth quarter reflects continued market pressure: BlueLinx expects daily sales volumes in specialty products to be slightly below the third quarter and the year-earlier period. Structural product volumes are also expected to decline slightly on both comparisons. The company said it will continue to focus on specialty products, supplier partnerships, multifamily sales, national accounts and builder programs.
Sources: Investing.com News.